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The Relationship Between Work During College and Post College Earnings
Daniel Douglas1, Paul Attewell2
1Trinity College, Hartford, CT, United States.
Frontiers in Sociology
|April 19, 2021
Summary
Working during college may boost future earnings. This study found that students who worked for pay during their undergraduate studies earned more after graduation than those who did not, challenging prior assumptions about employment impacting academic success.
Area of Science:
- Higher Education Research
- Labor Economics
- Sociology of Education
Background:
- Previous studies indicate a negative correlation between term-time employment and graduation rates.
- The potential long-term economic impact of undergraduate student employment remains under-examined.
Purpose of the Study:
- To investigate the post-college earnings of students who were employed during their undergraduate studies.
- To determine if working while enrolled impacts future financial outcomes.
- To compare the earnings premium associated with work experience to that of degree completion.
Main Methods:
- Utilized transcript data from a large, multi-campus U.S. university.
- Integrated student earnings data from state administrative records.
- Employed statistical models controlling for demographics, academic achievement, and selection bias.
Main Results:
- Traditional-age students who worked for pay during college showed a significant post-college earnings premium compared to non-working peers.
- This earnings premium was comparable to the financial benefit of completing a college degree.
- The findings held across diverse student subgroups and after accounting for selection bias.
Conclusions:
- Undergraduate employment may positively influence long-term economic outcomes, contrary to some prior research.
- Findings have implications for educational policy and theories of social stratification regarding the value of work experience.
- Further research should explore the mechanisms driving this earnings premium.
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